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Oct 31, 2017 | 01:10

Apple could drop Qualcomm

Apple has designed iPhones and iPads so it could stop using Qualcomm semiconductors, sources told Reuters. Fred Katayama reports.

TRANSCRIPT +

Apple is getting ready to drop Qualcomm's chips, sources told Reuters.
It has designed its iPhones and iPads to be able to stop using Qualcomm semiconductors.
Qualcomm stock plunged on the news.
Shares of Intel - which analysts say would benefit the most if Apple switches vendors - rose to a 17-year high.
Apple's move comes after Qualcomm withdrew a testing software Apple was using for Qualcomm chips.
The two companies are also locked in a multinational legal dispute over Qualcomm's licensing terms to Apple.
Chase Bank chief economist Anthony Chan.
(SOUNDBITE) ANTHONY CHAN, CHIEF ECONOMIST, CHASE BANK (ENGLISH) SAYING:
"If you look at a company like Apple, they're going to be working with different partners over time, and, certainly, always try to use the partners that create the best possible product. So, any changes that a company, like Apple, makes over time should not be surprising to anyone. They're just trying to deliver the best possible product for consumers."
The change - if it happens - would affect iPhones released in the fall of 2018.
Reuters sources said Apple could still keep Qualcomm on its supplier list.

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